An audit has found irregularities and losses worth Rs. 18.46 billion in the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) during the fiscal year 2024-25.
According to the Auditor General of Pakistan’s report, the losses to the public exchequer were caused by poor planning, weak management, and financial irregularities at the company.
Lease Money Not Recovered Despite Court Orders
The report said the company failed to recover Rs. 2.08 billion in lease payments from industrial owners for allotted land, even though court orders were in place.
It also failed to renew agreements for commercial land, which caused a loss of Rs. 629.8 million to the exchequer.
Land Issues in Buner, Mohmand, Jalozai, and Haripur
The auditors found that the company did not get land vacated in Buner, Mohmand, and Jalozai, resulting in a loss of Rs. 1.08 billion. Another Rs. 174.1 million was lost because commercial land was illegally allotted for industrial use.
In Haripur, plots 185, 186, 187, and 190, spread over 10 acres, were allotted to Al-Hadeed Engineering. However, the payment was not collected, which caused a loss of Rs. 497.8 million.
The findings come days after another audit found Rs. 16.94 billion in irregularities in the KP Minerals Department.
Liabilities Threaten Company’s Future
According to the report, the company’s contingent liabilities have reached Rs. 14 billion, which poses a serious risk to the continuity of its business operations.
The report raised questions about the company’s governance, land allotments, recovery of dues, and financial affairs. It said poor administrative decisions and alleged steps to benefit favored individuals caused serious damage to public resources.
KPEZDMC manages the province’s economic zones, including the Rashakai Economic Zone.
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